Question

The law of scarcity ______.

Options

• Does not apply to rich, developed countries

• Applies only to the less developed countries

• Implies that consumers want will be satisfied in a socialistic system

• Implies that consumer’s wants will never be completely satisfied

Answer 1

The law of scarcity implies that consumer’s wants will never be completely satisfied.

Explanation:

Scarcity is universal: even rich developed countries face it, so the law applies to all economies. Because wants are unlimited relative to resources, consumer wants can never be completely satisfied, and this remains true even in a socialist system.